Richard Russell – Brutal Times, Here Is The Key Going Forward
August 2, 2012
Today the Godfather of newsletter writers, Richard Russell, wrote about life during the Great Depression and the unknown but extremely important index that everyone needs to watch going forward: “The 30 Dow Industrial stocks portray the industrial capabilities of the US. But suppose there was an Index that portrayed the industrial capabilities of the entire civilized world? Happily, we now have just such an index. Dow Jones developed it, and they call it GDOW. It’s made up of 150 major blue chip international stocks, and it includes all 30 D-J Industrial stocks plus over 100 other major international blue chips.”
Richard Russell continues:
“I include a daily chart of GDOW below. You can see that GDOW has formed a pattern that is a potential head & shoulders formation. The base and the support for the formation come in at a value of 1700. This formation tells us where the world manufacturing and production stands, just as the Dow Industrials tells us where US manufacturing stands.
I intend to keep my subscribers abreast of the action of the important GDOW. Let me put it this way. As long as GDOW holds above 1700, we can rest assured that the world is all right. But if GDOW breaks below 1700, my instinct is to ‘run for the hills.’ We live in an international world today. All nations are now connected closely in a way that they have never been before in history.
This makes GDOW maybe the most important single index ever conceived by man. For this reason, I’ll monitor it, and let my subscribers know just what is happening to GDOW. I might add that I don’t like the fact that GDOW is in a potential head & shoulders formation. But when I say “Potential” it means that it has not happened yet.”